What do I do if I can't afford to pay my student loans?

If you can't afford student loan payments, first contact your loan servicer to explore federal options like Income-Driven Repayment (IDR) plans (potentially $0 payments), Deferment/Forbearance to pause payments, or extending repayment terms; also investigate loan forgiveness programs like PSLF, and for private loans, see if consolidation or refinancing helps, but avoid default by communicating proactively.

What if I can't afford student loan payments?

If you can't afford student loan payments, immediately contact your loan servicer to explore options like Income-Driven Repayment (IDR) plans for lower payments (possibly $0), deferment or forbearance to pause payments temporarily, loan consolidation, or refinancing, as avoiding payments leads to default, damaging your credit and risking wage garnishment. IDR plans base payments on income, while deferments/forbearances pause them, but interest accrues, so using Federal Student Aid's (FSA) Loan Simulator is crucial to understand impacts before choosing. 

What is the 7 year rule on student loans?

The "7-year rule" for student loans mostly refers to when negative marks, like defaults, fall off your credit report, typically 7 years after the first missed payment, but it's not a discharge from owing the debt; the debt itself often remains, especially for federal loans which have no statute of limitations and can be pursued indefinitely. In bankruptcy, the rule means federal student loans are generally dischargeable only if it's been over seven years since you stopped being a student, though private loans have different rules and federal loans are extremely difficult to discharge. 

How much is the monthly payment on a $70,000 student loan?

A $70,000 student loan's monthly payment varies widely, from roughly $750 to over $6,000, depending on interest rates (APR) and repayment term, with a 10-year loan at 5% being around $742/month, while a 1-year term at 14% jumps to $6,285/month; federal loans offer income-driven plans (IDR) for lower payments, but private loans depend heavily on credit score and term length.
 

What qualifies as hardship for student loans?

You have a partial financial hardship when the annual amount due on your loans (and, if you're required to provide documentation of your spouse's income, the annual amount due on your spouse's eligible loans) exceeds what you would pay under IBR or PAYE.

Should You Pay Off A Student Loan?

How to get out of student loan debt without paying?

See if you're eligible for Public Service Loan Forgiveness

Borrowers who work full time for 10 years in military, government, or non-profit jobs with a minimum of 10 years of payments could have their federal loan balances forgiven. Refinancing to a private loan or missing payments disqualifies you for this program.

What are valid reasons for deferment?

7 good reasons to defer university admission

• Take a gap year. Taking a gap year might be one of the most popular reasons to defer university admission. ...
• Address personal concerns. ...
• Improve your health. ...
• Raise additional funds. ...
• Complete an internship abroad. ...
• Build your academic skill set. ...
• Volunteer abroad.

What is the monthly payment on a $50,000 student loan?

A $50k student loan monthly payment varies significantly, but expect around $530/month for 10 years at 5% interest, while income-driven plans (SAVE, PAYE) can be much lower, often 10% of your discretionary income, making payments potentially between $0 to $200+, depending heavily on your earnings and the plan's specifics. Key factors are the interest rate, repayment term, and your income.
 

How to get student loan forgiveness?

Public Service Loan Forgiveness (PSLF)

1. after you've made 120 qualifying monthly payments under a qualifying repayment plan, and.
2. while working full-time for an eligible employer.

Is $100,000 in student debt a lot?

What is considered a lot of student loan debt? A lot of student loan debt is more than you can afford to repay after graduation. For many, this means having more than $70,000 – $100,000 in total student debt.

What happens if you never pay off your student loans?

If you never pay off your student loans, you face severe financial penalties, including major credit score damage, wage garnishment, seizure of tax refunds, loss of eligibility for future aid, and potential lawsuits, with the entire loan balance becoming due immediately (acceleration) after default. The government can intercept federal payments like Social Security, and the debt can follow you indefinitely, impacting your ability to buy homes, get credit, and potentially leading to extreme collection tactics, even involving law enforcement. 

At what age will my student loan be written off?

when you reach 65 or 30 years after your repayment due date (whichever is sooner) if you die before you pay the loan off. if you permanently cannot work due to a disability and receive a disability-related benefit - the SLC will look for written proof from a medical professional for this.

Can student loans take your house?

Yes, student loans can potentially lead to losing your house, but it's a complex, lengthy process, especially for federal loans, and extremely rare for the government to force a sale; lenders must typically sue you, get a court judgment, and then place a lien on your property, which can result in seizure when you sell, though it's more common for private loans to put your home at risk after a successful lawsuit. Federal loans are unsecured, so they can't seize your home without a court order, but the government can still sue, get a judgment, and place a lien, making assets like your home vulnerable. 

What happens if I'm unemployed and can't pay student loans?

If you make no payments, your loans will eventually go into default. Forbearance, deferment and alternative payment plans are some of the options available if you're unemployed and cannot make loan payments. The options available differ based on whether you have federal or private student loans.

What if I never earn enough to repay my student loan?

You can request a refund at the end of the tax year if your total income was below the annual repayment threshold.

What is going on with student loans in 2025?

Enacted in July 2025, the One Big Beautiful Bill Act (OBBB) made significant changes in federal student loan programs as a part of the shifts in fiscal policy. While there are no changes to federal student loans for the 2025–26 academic year, changes resulting from the legislation are slated for July 1, 2026.

How much is the monthly payment on a $70,000 student loan?

A $70,000 student loan's monthly payment varies widely, from roughly $750 to over $6,000, depending on interest rates (APR) and repayment term, with a 10-year loan at 5% being around $742/month, while a 1-year term at 14% jumps to $6,285/month; federal loans offer income-driven plans (IDR) for lower payments, but private loans depend heavily on credit score and term length.
 

What is the $5500 student loan?

A "$5,500 student loan" typically refers to the maximum Federal Direct Loan amount for a first-year undergraduate student, which combines subsidized and unsubsidized options, with a cap of $3,500 being subsidized (government pays interest) and the rest unsubsidized (interest accrues immediately). This is the starting point for federal student borrowing, with higher limits available in subsequent years and for independent students, generally part of the William D. Ford Federal Direct Loan Program. 

Is $40,000 in student debt bad?

According to recent research from the Education Data Initiative, it costs the average student $38,270 per year to attend a four-year university in the United States. Right now, the average student loan debt in the U.S. is nearly $40,000 but many students borrow much more.

How long do 100k student loans take to pay off?

The average time to pay off 100k student loans ranges from 10 to 25 years. Standard Repayment Plan: With fixed payments over 10 years (possibly 10 to 25 years next summer), borrowers might pay around $1,000 per month, depending on interest.

Do student loans get forgiven after 20 years?

Yes, federal student loans can be forgiven after 20 or 25 years under Income-Driven Repayment (IDR) plans, depending on the loan type and when they were taken out, with undergraduate loans generally qualifying in 20 years and graduate loans after 25 years, though the PSLF program offers forgiveness in 10 years for public service workers. The SAVE Plan (a type of IDR) offers faster forgiveness for smaller balances, and a one-time IDR adjustment is helping borrowers get closer to forgiveness faster. 

How many people have $100,000 in student loans?

Around 3.6 million U.S. student loan borrowers owe more than $100,000 in federal student debt, a figure that has grown significantly, representing about 7% of all borrowers, with many of these larger debts concentrated among graduate and professional degree holders, according to late 2025 data from the BestColleges and CNBC. 

What do I do if I cant pay my student loans?

If your monthly payments would still be unaffordable, you can temporarily pause your payments using deferment or forbearance. A deferment or forbearance allows you to temporarily stop making your federal student loan payments or temporarily reduce your monthly payment amount. Terms vary across options.

What is a hardship deferment?

A hardship deferment is a temporary pause on loan payments, usually for federal student loans, allowing you to stop paying during severe financial difficulty (like low income, unemployment, or public assistance) for up to three years, with subsidized loans often not accruing interest, unlike forbearance. You must apply and provide documentation (like income proof) to your loan servicer to qualify and reapply annually. 

What are good reasons to ask for a deferral?

This allows admitted students to postpone their start date while keeping their place in the incoming class secure. Deferral letters are often used by students who need extra time to address personal circumstances, take advantage of a significant opportunity, or prepare for the academic journey ahead.